🚨😱🚨ATTENTION🚨😱🚨
Bitcoin Exposed to Possible $1.5 Billion GBTC Sales, JPMorgan Says
According to the report, an additional $1.5 billion could flow out of GBTC, putting further pressure on Bitcoin's price in the coming weeks.
#Bitcoin has fallen more than 15% since the inaugural launch of cash exchange-traded funds#ETF last week, with $1.5 billion flowing out of the Grayscale Bitcoin Trust GBTC, the financial giant said Thursday#JPMorgan (JPM) in a research report.
“It appears that GBTC investors who over the past year had purchased the GBTC fund at a significant discount to NAV to position themselves for its eventual conversion into an ETF have reaped all of their post-ETF conversion gains by exiting the bitcoin space altogether rather than moving into cheaper bitcoin spot ETFs,” wrote analysts led by Nikolaos Panigirtzoglou.
Before being included in a trust’s ETF, GBTC was one of the only ways for stock traders in the United States to gain exposure to Bitcoin’s price movements without having to purchase the cryptocurrency itself. This made it the world’s largest regulated Bitcoin fund by AUM.
The bank had previously estimated that up to $3 billion had been invested in GBTC in the secondary market in 2023 to exploit the trust’s discount to NAV. If that estimate is correct, and given that $1.5 billion already remains, there could be another $1.5 billion to exit the space via profit-taking on GBTC, putting further pressure on Bitcoin prices in the coming weeks.
These outflows are also putting pressure on GBTC to reduce its fees, the report said, adding that “GBTC’s 1.5% fee still appears too high compared to other bitcoin spot ETFs that are at risk of further outflows.”
PS: Don't forget if you can give me a little tip to support me and encourage me to continue and thank you.
